MUMBAI: ICICI Lombard General Insurance has reported a net profit of Rs 746.6 crore in the June quarter, up a strong 47.6% from Rs 505.9 crore in the same period a year ago, as the company had lower claims and higher premium collection from the staple motor segment.
The surge was primarily driven by higher investment income and a recovery in underwriting performance, particularly in the motor segment, the company said in a statement Tuesday.
Gross written premium during the quarter inched up 1.5% to Rs 805 crore from Rs 793 crore in the same quarter last year, while net written premium rose to Rs 561 crore, up 4.7% from Rs 536 crore and the net premium earned came in at Rs 513.6 crore, up 14%.
Total income surged to Rs 608 crore in Q1 from Rs 535 crore, bolstered by a sharp rise in investment income.
Net income from investments increased to Rs 94.3 crore, up 11.6 percent from Rs 84.45 crore.
Incurred claims were Rs 375 crore compared to Rs 333.4 crore in the corresponding quarter last year. Operating expenses related to the insurance business rose moderately to Rs 73.8 crore.
Despite the higher claims, the company posted an underwriting profit of Rs 129.3 crore reversing an underwriting loss of Rs 13.46 crore in Q4FY25 and showing significant improvement over the Rs 134.6 crore underwriting profit in Q1FY25.
The motor insurance segment remained a major contributor with Rs 267.49 crore in net premium earned, up 13.5% on-year. It also reported the highest segment operating profit of Rs 54.95 crore compared to Rs 37.47 core in the year-ago quarter.
The health segment showed a sharp turnaround, operating a profit compared to a net loss in Q1FY25. Retail health, however, reported an operating loss of Rs 8.45 crore.
The company maintained a solvency ratio of 2.70, above the regulatory requirement. The combined ratio stood at 102.5, marginally improved from 102.8 on-year, claims ratio at 69.7 and retention ratio at 73.